A: 

I imagine the usual way would be setting up a BT Tracker, and establishing a source that starts distributing the material. I'm sure there will be better answers explaining how to do that, but here is what looks like a good starting point, outlining the installation of a Python based Tracker. I guess authentication is then a function within that setup.

What I really want to say though, Bittorrent also offer services tailor-made for applications like this: Here there are free and paid services, all promising to be much cheaper than a traditional Content Delivery Network. Can't say how secure it is though (in terms of the data being limited to a closed circle.)

Pekka